Internal Audit Procedures | How it Works?
Internal audit is a dynamic procedure and a systematic process for evaluating and improving the effectiveness of organization with risk management, control, and governance processes. This process is done to keep the objectives and internal activities of the organization well controlled and for Smooth Running of organization.
However, internal audit is carried out to fulfil its objectives and to improve organisation/Industry internal process as per the international standards.
What are the roles and duties of an internal auditor?
The internal auditor's role during internal audit procedure is to provide assurance that the organization's tools like risk management, administration and internal control processes are working effectively
- Provide a structure for understanding and implementing quality policy.
- Boost management confidence for the implementation of the prescribed quality management system.
- Work with the system along with structured means to identifying deficiencies. Accepting corrective action and follow up to confirm effectiveness.
- Highlight system weakness before potential issues related to product quality
- Provide a convenient framework for conducting investigations in a particular area
- Identify loopholes and recommend risk-mitigation measures and cost savings
- Provide an opportunity for personnel to see how their work output affects other departments.
Or we can say, the internal auditor's activity helps an organization meet its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes.
What is the difference between internal and external audit?
Internal audit procedure focuses on issues related to the organization's business processes, practices and risks, while the external audit process supports all of those topics within the scope of international measurement/Standards and also highlights the financial statements. External auditor writes their final report at the end of the audit, about their opinion through the report, for rectification and necessary changes required into organisation.
What should be the objectives of the audit?
- To determine compliance with quality system elements, compliance with specified requirements
- To determine the effectiveness of the quality system implemented in meeting the quality objectives
- To provide opportunities for improvement in quality systems
- To meet regulatory requirements